, FIN2602 ASSIGNMENT 2 SEMESTER 1 2026 SOLUTIONS
QUESTION 1:
1.1 Future value of R3 000 (simple interest, 10%, 15 years)
Using simple interest, the interest is calculated on the original amount only.
Description Value (R)
Principal amount 3 000
Interest (3 000 × 10% × 15 years) 4 500
Future value 7 500
1.2 Tornado Tower investment after 1 year (simple interest, 12%)
Description Value (R)
Principal amount 1 200
Interest (1 200 × 12% × 1 year) 144
Total after 1 year 1 344
1.3 Tornado Tower investment after 2 years (simple interest)
Since simple interest is used, the same interest is earned each year.
Description Value (R)
Interest per year 144
QUESTION 1:
1.1 Future value of R3 000 (simple interest, 10%, 15 years)
Using simple interest, the interest is calculated on the original amount only.
Description Value (R)
Principal amount 3 000
Interest (3 000 × 10% × 15 years) 4 500
Future value 7 500
1.2 Tornado Tower investment after 1 year (simple interest, 12%)
Description Value (R)
Principal amount 1 200
Interest (1 200 × 12% × 1 year) 144
Total after 1 year 1 344
1.3 Tornado Tower investment after 2 years (simple interest)
Since simple interest is used, the same interest is earned each year.
Description Value (R)
Interest per year 144
